CALIFORNIA INVESTORS PLEASE READ
Hello all. I was wondering if any of you guys have heard of California Civil Code 1695. It is regarding "equity purchases" (Sub to, pre-forc. etc.).
Has this regulation affected any of you guys? How has this changed your investing methods?
Any input is greatly appreciated.
Thanks,
Gary
No coment huh?
Hello,
I am a NEWBIE in Los Angeles. I have not started with any purchase or investments yet. Have you bought any TAX LIENS in LA county, if so What info can you share about it?.
When I did a search on Google on "California Civil Code 1695", it gave me some info. You guys might want to read it. But my take on this is that it allows the sellers in foreclosure a 5 day right of recession. There are other codes that is stated in this, so read on.
This was set up to protect the people in foreclosure from deceitful, unlawful, dishonest investors.
Of course everyone in here practices ethical dealings and hopefully!
Hi to all, 1695 good legislation drawn as requested by the Mortgage Brokers Association, the Realtors etc. Interesting large holes (as always) present.
First please believe me I approve. You should see some of my competition, talk about Simon across the ice with dogs. If only they would wipe the sneers off their face as they massage the fallen to their own benefit.
lst hole. If you take a Quit Claim Deed from a relative it makes everything allright. Go figure that one.
2nd hole. If you are doing this for yourself and are going to move in, now that makes everything all right.
3rd hole. If you record a deed of trust and have it executed and then issue a Deed of Full Reconvayance everything is all right.
The proper way: You stay in touch during the period of five days, help them move, advance money. Hold the baby and go goo goo.
Once again the proper method is to be of some assistance to the fallen in their moment of need. I arrange future housing even to prepaying rent. I envolve them in a future profit if I am going to fix up the property and reselll. Indeed I may even go so far as to execute a Note and Deed of Trust with a three year due date. So they are covered just in case at my advanced age I should suddenly turn red, grow a forked tail and join all the attorneys in the very hot hot hereafter.
Yes, I make a profit, but I split it up so that the fallen can get up off their posteriors and continue onward and I hope upwards in pursuit of the American Dream. An Amish girl for a wife. A Chinese girl for the Cook and a Philippina girl for a girl friend. The girl from Vassar or Wesllely for intellectual conversations over apertif's prior to the three knocks and the opening of the curtain at the Com Franc.....Ah the good life.
Oh I almost forgot, if you are a member of the Bar, which means you failed the Sat test four times and hold a provisional only card in the human race, it does not apply.
Only in Calif! At least we do not burn our witches. We turn them into Movie Stars.
Now now, my daughter is not a witch, at least not yet...
Please forgive, I am high on Containers the housing of the future. Why dont you all join me?
Lucius Fisher Foster III aka da Toid
We all can tell that she would not have gotten where she is today without a bit of your genetic ability to craft language.
Bep2000,
As far as I know, L.A. County does not sell tax liens. I do not believe there are any California counties selling tax liens at the moment.
Lastly, you probably want to ask this in the tax lien forum.[ Edited by Rogue on Date 12/14/2003 ]
Lufos....as per usual, your reply was amusing and informative. The code does call for a 5 day waiting period. Will take 5 days to stop laughing at Lufos.
I am pretty sure that CA is not a tax lien state.
At risk of prolonging the tax lien discussion a bit more, I had heard that the legislature had authorized the sale of tax liens, but the counties have been slow and/or reluctant to follow.
The 5 day waiting period is correct. Should you get short on time, have your client file for bankruptcy, and cancel the bankruptcy after the 5 days is up. Th bankruptcy filing stops the forclosure in its tracks. Not sure, if you want coverage about fairness rule in Cali, but you will be protected and be considered fair if you fill out a net equity worksheet, and offer a split of the estimated net profit with your client. For instance, you will net 50k on the deal, offer 25k to the seller/client. part now, part when they move, and most when you sell. No raping in California, unlike some states.
As usual, 1695 legislation is enacted to stop the certain unfair abuses rather than to interfere with entrepreneurs desire to trade the handful of borrowed money for someone's lifetime savings held in home equity. What's fair is fair so with a sword above the head, many predators would have to think twice before they leave another equity striping "blood trail" on your neighborhood sidewalk. I am for it 100%.
So what of you have to wait 5 days? It leaves the room for others to better your offer which you can mach or bit again so the homeowners win. With 1695 in power, the game just got more intense. That's all.
[addsig]
As usual, 1695 legislation is enacted to stop the certain unfair abuses rather than to interfere with entrepreneurs desire to trade the handful of borrowed money for someone's lifetime savings held in home equity. What's fair is fair so with a sword above the head, many predators would have to think twice before they leave another equity striping "blood trail" on your neighborhood sidewalk. I am for it 100%.
So what of you have to wait 5 days? It leaves the room for others to better your offer which you can mach or bit again so the homeowners win. With 1695 in power, the game just got more intense. That's all.
[addsig]
Omega
You are right on. See all those boats and water have not had an effect on you.
I approve of the Legislation only wish it had been better written.
Frankly speaking, " The Sins ye do two by two, you pay for one by one. " So I keep involved with my client and lead him back up to salvation. Another word for solvency.
cheers Lucius
The law requires a 5 day right of recission in the purchase contract if the seller in is default and it is his personal residence. So, in CA, "getting the deed" is a little trickier from someone in Foreclosure.
The notice is as follows:
--------------------------------------
NOTICE REQUIRED BY CALIFORNIA LAW
(this must be printed in 14 point typeface)
Until your right to cancel this contract has ended, ___________________
___________________________________________(Name) or anyone working for ________________________________(Name) CANNOT ask you to sign or have you sign any deed or any other document.
The contract required by this section shall survive delivery of any instrument of conveyance of the residence in foreclosure, and shall have no effect on persons other than the parties to the contract.
"NOTICE OF CANCELLATION
(Enter date contract signed) _____________________________________
You may cancel this contract for the sale of your house, without
any penalty or obligation, at any time before _______________________.
(Enter date and time of day)
To cancel this transaction, personally deliver a signed and dated copy of this cancellation notice, or send a telegram to ________________________ _____________________________________,
(Name of purchaser)
at ___________________________________________________________
(Street address of purchaser's place of business)
NOT LATER THAN _______________________________.
(Enter date and time of day)
I hereby cancel this transaction _______________________________.
(Date)
___________________________________
(Seller's signature)
Lufos forgot a couple of other "holes"
It only applies to owner occupied foreclosures and of course the 5 day waiting period is waved if you do a deal the day of the sale.
It is also important to read CC2945 which relates to "Foreclosure Consultants".
I feel that everyone who deals in foreclosures should use these CA regulations as their minimum standard. I feel that these regs will soon be coming to your town.
Lastly, CA would already be in Perdition if it wasn't for St. Lufos.